803. Statement To Be Circulated Or Made Available

(1) Where a meeting is summoned under section 802
(a) every notice summoning the meeting that is sent to a creditor or member must be accompanied by a statement complying with this section, and
(b) every notice summoning the meeting that is given by advertisement must either–
(i) include such a statement, or
(ii) state where and how creditors or members entitled to attend the meeting may obtain copies of such a statement.
(2) The statement must–
(a) explain the effect of the compromise or arrangement, and
(b) in particular, state–
(i) any material interests of the directors of the company (whether as directors or as members or as creditors of the company or otherwise), and
(ii) the effect on those interests of the compromise or arrangement, in so far as it is different from the effect on the like interests of other persons.
(3) Where the compromise or arrangement affects the rights of debenture holders of the company, the statement must give the like explanation as respects the trustees of any deed for securing the issue of the debentures as it is required to give as respects the company’s directors.
(4) Where a notice given by advertisement states that copies of an explanatory statement can be obtained by creditors or members entitled to attend the meeting, every such creditor or member is entitled, on making application in the manner indicated by the notice, to be provided by the company with a copy of the statement free of charge.
(5) If a company fails to comply with this section, a contravention of these Regulations is committed by–
(a) the company, and
(b) every officer of the company who is in default.
This is subject to subsection (7) below.
(6) For this purpose the following are treated as officers of the company–
(a) a liquidator or administrator of the company, and
(b) a trustee of a deed for securing the issue of debentures of the company.
(7) A person does not contravene this section if he shows that the default was due to the refusal of a director or trustee for debenture holders to supply the necessary particulars of his interests.
(8) A person who commits the contravention referred to in subsection (5) shall be liable to a level 3 fine.